Appealing a Property Tax Assessment of a Commercial Real Estate Property

 Posted on March 06, 2023 in Real Estate

Purchasing a commercial property represents an exciting opportunity for any investor. If you own commercial real estate, you know this firsthand. Whether you plan to use the commercial property yourself or lease it out to another party, you likely have ambitious plans for the future. Unfortunately, many commercial real estate investors find their plans derailed by excessive property tax obligations.

In this blog, we will discuss the legal options available to commercial real estate owners in this predicament. It may be possible to lower your tax burden by filing an appeal or taking advantage of certain tax incentives.

How to Appeal a Property Tax Assessment for a Commercial Property

An old saying states that the only things certain in life are death and taxes. Still, your tax bill should not be so demanding that it ruins your future ambitions. If you think a commercial property tax assessment is too high, you should consider filing an appeal with the local taxing authority. The exact process for appealing depends on your jurisdiction, but here are some general tips to keep in mind:

Gather Evidence - Before filing an appeal, you should compile evidence that supports your claim. This can include a comparative market analysis of the area, an appraisal of your property, and a comprehensive income capitalization analysis. Identify any obsolescence that impacts the value of the property.

Meet Deadlines - Local governments usually send assessment notices at the beginning of the calendar year and put deadlines on when a property owner may file an appeal. Make sure to double-check when the deadline is so you do not miss it.

Look for property tax breaks - Some local governments offer tax breaks or exemptions to commercial property owners in certain circumstances. For example, there may be tax incentives for property owners who are developing or restoring their properties. If this is an option, make sure you take advantage of it.

Work with an experienced commercial real estate attorney - The process of appealing a property tax assessment is complicated and time-consuming. An experienced commercial real estate attorney who is familiar with the local laws and procedures can help ensure you get the best possible result from your appeal.

Contact our DuPage County Commercial Real Estate Lawyer

If your commercial property tax burden is overwhelming you, contact Whitacre & Stefanczuk LTD to discuss the possibility of filing an appeal. You may be able to lower your tax burden. Call our Cook County commercial real estate attorneys at 773-622-6100 for a free initial case assessment.

Source:

https://www.kiplinger.com/slideshow/taxes/t055-s003-how-to-appeal-property-tax/index.htm